Question

You bought a stock one year ago for ​$50.99 per share and sold it today for ​$58.38 per share. It paid a ​$1.66 per share dividend today.

a. What was your realized​ return?

b. How much of the return came from dividend yield and how much came from capital​ gain?

Answer 1

	Po =	Purchase Price
	P1 =	Sale Price
A)	Total Return on Shares =	(Dividend + (P1 - P0)) * No of Shares
		(1.66 + 58.38 - 50.99) * 1
		9.05
	Return on Shares in % =	Return on Share / P0 * 100
		9.05 / 50.99 * 100
		17.75%
B)	DIVIDEND YIELD =	Dividend Income/ P0 * 100
		1.66 / 50.99 * 100
		3.26%
	CAPITAL GAIN YIELD =	(P1 - P0)/ P0 * 100
		(58.38 - 50.99) / 50.99 * 100
		14.49%